Decision making process in consumer markets involves the individuals or households who purchase goods and services for personal consumption. Consumer buyer behavior refers to the process individuals go through when purchasing goods or services for personal use. Several factors influence consumer buyer behavior, including:
Exploring Consumer Market and Factors Behind Our Choices
Cultural Factors
These include culture, subculture, and social class, which shape consumer’s values, preferences, and behaviours. Cultural factors influence what products are considered desirable, acceptable, or taboo in a society
For instance, in some cultures, beef is considered a staple food and is commonly consumed, while in other cultures, such as Hindu culture, consuming beef is taboo due to religious beliefs.
Social Factors
Social factors encompass reference groups, family, roles, and status. Reference groups include family, friends, coworkers, and celebrities whose opinions and behaviors influence purchasing decisions. Family structure, roles, and dynamics also play a significant role in consumer behavior.
For instance, a teenager may be influenced by their peer group’s preferences for certain clothing brands or music genres. Similarly, a professional might be influenced by the purchasing decisions of colleagues or industry leaders when considering which technology products to buy.
Personal Factors
Personal factors include age, occupation, lifestyle, personality, and self-concept. These factors influence how individuals perceive themselves and their needs, which in turn affects their purchasing decisions.
For instance, younger consumers may be more inclined to purchase trendy and technologically advanced products, while older consumers may prioritize reliability and practicality.
Psychological Factors
Psychological factors involve motivation, perception, learning, beliefs, and attitudes. Motivation drives individuals to fulfill their needs and desires through purchasing. Perception influences how consumers interpret information and make decisions.
For instance, consider a person who is motivated to maintain a healthy lifestyle. This motivation may drive them to purchase organic foods, exercise equipment, and wellness products to fulfill their desire for health and well-being.
Stages in the buyer decision process
the consumer decision-making process, consists of several stages that individuals typically go through when making a purchase. These stages provide insight into how consumers think, evaluate options, and ultimately make buying decisions.
Problem Recognition
This is the first stage, where consumers recognize a need or problem that can be satisfied through a purchase. Needs can arise from internal stimuli (such as hunger or thirst) or external stimuli (such as advertising or recommendations from others).
Information Search
Once the need is recognized, consumers may engage in an information search to gather information about possible solutions. This search can involve internal sources (such as memory or past experiences) or external sources (such as online research, reviews, or seeking advice from friends and family).
Evaluation of Alternatives
After gathering information, consumers evaluate different alternatives based on their perceived attributes, benefits, and drawbacks. They may use criteria such as price, quality, brand reputation, and features to compare and assess the options available to them.
Purchase Decision
In this stage, consumers make a decision to purchase a particular product or service from among the alternatives they have evaluated. This decision can be influenced by various factors, including personal preferences, budget constraints, perceived value, and past experiences.
Post-Purchase Evaluation
After making a purchase, consumers evaluate their decision and the satisfaction from the chosen product or service. If the product meets or exceeds expectations, it leads to positive post-purchase satisfaction. However, if there is a gap between expectations and the actual experience, it may result in post-purchase dissatisfaction.
These stages are not always linear and may vary in duration and intensity depending on factors such as the complexity of the purchase, the level of involvement, and individual differences.
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Adoption and Diffusion Process For New Products/Services
The adoption and diffusion process for new products/services refers to the stages through which consumers adopt and integrate a new product into their lives or communities. This process is crucial for understanding how innovations spread and become accepted by the market.
The adoption and diffusion process typically consists of the following stages:
Stage 1: Awareness
The first stage involves consumers becoming aware of the existence of a new product or innovation. This awareness can be generated through various channels such as advertising, word-of-mouth, or media coverage.
Stage 2: Interest
Once aware of the new product/service, consumers may develop an interest in learning more about its features, benefits, and potential applications. They may seek out additional information through research, demonstrations, or reviews.
Stage 3: Evaluation
In this stage, consumers evaluate the new product/service based on their needs, preferences, and perceived value. They compare it with existing alternatives and assess whether it addresses their requirements better than other options available in the market.
Stage 4: Trial
If consumers find the new product/service appealing after evaluation, they may decide to try it out for themselves. This trial phase allows consumers to experience the product firsthand and determine its suitability and performance in real-life
Stage 5: Adoption
Adoption occurs when consumers decide to fully integrate the new product/service into their regular usage. They commit to using the product consistently and incorporate it into their daily routines or lifestyles.
Stage 5: Diffusion
Diffusion refers to the process by which the new product/service spreads throughout the market or community. It involves the product being adopted by an increasing number of consumers over time, leading to widespread acceptance and usage.
Lets put this process this way:
The launch of a new smartphone. Consumers become aware through ads, develop interest, evaluate its features, trial by testing in-store, adopt by purchasing, leading to widespread diffusion in the market
Few Other Factors That Influence Buyer Behaviour
Price
People consider whether a product fits their budget. Think about how much you’re willing to spend on something. If it’s too expensive, you might look for cheaper options or wait for a sale
Quality
Buyers always look for products that are reliable and durable. We all want things that last and work well.
Brand
Reputation and familiarity with brands influence the choices. People like to buy branded items for two reason: Trust and showoff.
Needs and Wants
Sometimes we buy things because we really need them, like groceries or a new phone charger. Other times, we just want something because it’s cool or trendy.
Social Influence
Recommendations from friends and family affect the decision of buying. Hearing from people we trust can make a big difference in buying.
Convenience
How often do we choose a store or a product just because it’s easier to get to or order online? Convenience is a big factor in our decisions.
Emotions
The feelings and experiences impact purchasing decisions, whether we’re treating ourselves or trying to lift our spirits.
Perception
Sometimes we’re willing to pay more for something just because we think it’s better, even if it’s not. It’s all about how we perceive the value of things.
Promotions
Who doesn’t love snagging a deal? Sales, discounts, and special offers always catch our eye and can push us to make a purchase.
Reviews and Recommendations
Online reviews and testimonials influence the buying decisions.
Conclusion
The consumer market is shaped by what we value culturally, socially, personally, and psychologically, influencing what we buy. When we decide to purchase something, we go through steps like realizing we need it, looking for information, and thinking about our experience afterward. For new products, we first hear about them, get interested, check them out, try them, and then decide if we want to keep using them. On the flip side, businesses have their own way of buying things, which starts with realizing they need something and ends with making sure it works well for them.
